Tesla Investor Sentiment Sours Despite Musk’s Efforts as Valuation Concerns Mount

Gary Black, a prominent Tesla investor and advisor, has liquidated his entire position in the electric vehicle maker for the first time since 2021. The move comes as Tesla’s valuation appears increasingly disconnected from fundamentals, with Black selling his remaining shares at $358 each.

Concerns center on Tesla’s sky-high 2025 P/E ratio of 188x alongside declining earnings estimates - down 5% last week and 40% year-to-date. Delivery figures paint a bleak picture, with April performance particularly weak. Black projects Q2 deliveries will fall 12% year-over-year, with full-year numbers declining 10%, steeper than Wall Street’s 7% and 5% estimates.

The upcoming robotaxi demonstration in Austin carries asymmetric risk, while the anticipated "affordable" July vehicle fails to excite - likely just a budget Model Y rather than a true market-expanding new model. Black warns of parallels to 2023-2024’s price-cut strategy that failed to boost sales, predicting further estimate reductions. His 6-12 month price target stands at $310.